Guernsey has this month as part of its annual budget, approved a new fiscal measure designed to attract wealthy new residents to the Island.
New arrivals can take advantage of a lower tax cap of £50,000 per annum, for a maximum of four years, should they buy a property of more than £1.5 million. The proposal was approved in the Island’s parliament, the States of Guernsey, and is effective from January 1 2018.
The Island’s Chief Minister, Deputy Gavin St Pier, said: “Guernsey is serious about welcoming newcomers to our Island and this measure should be attractive to those who have levels of income that qualify them for our tax cap. It provides certainty for the new residents and can only be used by those who make Guernsey their home; genuine substance and presence on the Island has always been a very important matter for us.”
Andrew Carey, the head of Locate Guernsey, the government agency which promotes the territory as a place to live and work, added: “Guernsey’s tax advisers, lawyers, estate agents and, indeed, Locate Guernsey are all very positive about this measure. The Island has long been a wonderful place to live; it’s beautiful, safe and has a really high quality of life; the new tax cap adds another attractive reason for Guernsey. A move to Guernsey makes good financial sense and this tax cap reduction for new arrivals just underlines that.”
The Guernsey tax cap is £110,000 for income arising from outside the Island or £220,000 if Guernsey income is included. Both figures are now reduced to £50,000 for people who are new to the Island and have bought a property of at least £1.5 million on the Open Market: the part of Guernsey’s housing stock available to those who do not have an existing familial connection to the Island.
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